Commercial Property Recovers After October Pause
The commercial property market held its breath in October, when financial markets around the world went into freefall. However, after a short pause activity levels are now picking up again according to Miranda Munn, Managing Director of commercial property search engine, NovaLoca.
In October, there was a 27% fall month-on-month in enquiries, for all types of commercial property, generated through NovaLoca.com. However, since early November enquiries have returned to near-normal levels. “It would seem that, as our statistics suggest and other industries have long accepted, anything can be sold on the web and everybody uses it,” Munn notes. The majority of property enquiries on NovaLoca come from occupiers rather than agents, so these numbers are likely to represent a true picture of the mood of occupiers: after a pause as the economic downturn became front-page news, activity in the market is now beginning to return.
Agents have continued to market larger commercial buildings through the NovaLoca portal. In fact, 35% of leads generated for clients via NovaLoca are for buildings of 4,000 sq ft or larger. The other 65% of enquiries have gone to agents with instructions for small properties, less than 4000 sq ft and which have a lower marketing budget to match. These agents have been finding that the website is the ideal solution thanks to its low costs: listing a property on NovaLoca for six months comes with a cost of just £50. This compares favourably with other online marketing tools such as Auto Trader, which currently charges £40 for placing an online advertisement for a car for six weeks.
NovaLoca’s nationwide coverage is also proving attractive to agents with commercial property to market. Since January this year, 46% of enquiries through NovaLoca have been for properties in the North, with 54% relating to those in the South. As northern cities such as Manchester and Birmingham become increasing recognised as centres of business it may be expected that this will continue to increase.
In recent weeks, there has been a slight shift towards smaller units becoming more popular, while the proportion of enquiries about properties in the North has risen. “Only time will tell if these movements are the beginning of a longer-term trend,” Munn commented.
For further information, please visit www.novaloca.com or call 0845 094 7902.
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